Banpu Co., Ltd CSR Awards Interview September 1, 2014

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1 Banpu Co., Ltd CSR Awards Interview September 1, 2014

2 Our Operations Mongolia Hunnu Coal development Tsant Uul Altai Nuurs Unst Khudag China Gaohe Mine: 6 Mt Hebi Mine: 1.5 Mt 3 Power Plants 248 MW Laos Hongsa Power 1,878 MW 6Mt 248 MW 1.5Mt 1,878 MW 1,434 MW 29 Mt Indonesia coal Output 29 Mt 5 Mines : Indominco, Trubaindo, Jorong,Kitadin and Bharinto Thailand BLCP power 1,434 MW 20 Mt Australia coal Output 20 Mt 10 Coal mines Mines Power plant 2 Power project 2

3 Our Vision & Missions Vision Missions To be an energetic Asian energy of quality products & service and be recognized for its fairness, professionalism, and concerns for society and environment 1. To develop business in the fields of energy in pursuit of Asian leadership position. 2. To diversify and invest in strategic business to enhance competitiveness. 3. To provide a variety of quality products and services with commitment, reliability, and flexibility. 4. To conduct business in socially, ethically and environmentally responsible manner. 5. To build sustainable value for shareholders, customers, business partners, employees, local communities, and to be a good citizen to host governments. 3

4 Stakeholder Engagement Local knowledge transfer, Tax, Regulatory compliance, Good Corporate Governance Transparency, Appropriate financial return Government & Regulator Financial Community Employee SD Management Benefit, Capability development, Career path Less impact, Improve quality of life Community Customer Quality Product, Appropriate price Business Partner Integrity, Good corporation 4

5 Key Enablers BANPU SD Framework License to Operate Health & Safety Environment Community Development Localization Good Governance Business Ethics Compliance Good Corporate Citizen Competitiveness People Development Operational Excellence Technology 5

6 Sustainable Development Committee 6

7 License-to-Operate: Environment Major Issues Natural Resources Conservation (e.g. Energy Management, Land Use, Mine Rehabilitation, Biodiversity) Environmental Impact Management (e.g. Acid Mine Drainage, Climate Change, Air Emission, Waste Management) 7

8 License-to-Operate: Environment (Carbon Emission) Coal Indonesia to reduce Carbon emission by 5% in 2015 (2010 as baseline) The target can be achieved by Energy Management initiatives, machinery efficiency improvement, etc. Participate in Carbon Disclosure Project (CDP) New Energy Business Development (e.g. Ethanol, Wind, etc.) 8

9 License-to-Operate: Community Development Community Sustainability Infrastructure Economic Health & Sanitary Education Social Culture Capacity Building Community Consultative Committee (CCC) 9

10 License-to-Operate: Community Development Infrastructure (irrigation canal, building, etc.) Economic (fabric dying, vegetable farming, etc.) 10

11 License-to-Operate: Community Development Health (Medical checkup, maternal and child health care training, etc.) Education (Learning and teaching equipment, scholarships for nursing college, etc.) 11

12 CSR in Thailand 12

13 Power Green Camp (PWG) Started in 2006, 9th consecutive year this year Strategic partner : Faculty of Environment and Resource Studies of Mahidol University, environmental and resources government agencies, NGO and local community Target: 11 th grade students throughout the country Objectives: o Educate and broaden youth understanding about environmental science o Build sustainable environmental awareness and a conservation conscience for future generations o Strengthen Banpu Brand on environmental concern Result: In eight years, there have been about 535 participating students and also developed around 120 youth leaders who have had the opportunity to exercise their leadership skills in the environmental sector with strong network

14 Banpu Champions for Change (BC4C) Started in 2011, this year continues as 4 th consecutive year Submit SE Proposal Phase I Selection Process 10 projects were selected and executed Business model training / Coaching / Mentoring Funding 50,000 Baht per project Phase II Selection Process 4 projects were selected Lesson learnt and project wrap-up summary Business management training / Coaching / Mentoring Funding 200,000 Baht each 3 months 6 months Strategic partner : Change Fusion Institute (organizing NGO) and several NGOs focusing on social leaders & capacity building (Ashoka, Spring Professional- a recruitment firm, Embassy of Canada, Chulalongkorn University, Asian Leadership Academy, etc.) Target: Thai youth interested in Social Enterprise Objectives o Supporting development of the next generation in social entrepreneurship. o Grooming the youth in SE and business management skills, addressing social issues. o Strengthening Banpu Brand in supporting national direction Results o Since 2011, BC4C has supported 31 social enterprises to run trial operations (phase I) based on the project owners concepts and interest. 12 outstanding projects were further sponsored (phase II) to develop into sustainable social enterprises. 14

15 Banpu Table Tennis Club (BTTC) Started in 2008, this year continues as 7 th consecutive year program Target: Youth talent with high potential in table tennis Objectives o Athletes self-development in both physical and mental health through various activities. o Forming new management systems and standards of table tennis clubs in Thailand (systematic operation and individual development emphasizing on ethics, discipline and teamwork- other than sports capacity. o Promoting relationship with Chinese local community and authority (linkage of Thailand and China) Mechanics: o Daily training by coaches (former national players) o Exchange program to China Zhengding TTC o Training in Thailand by Chinese coach o Participation in national and international tournament competition Results: o Many BTTC players won prizes and captured high ranking in both national and international matches, with a number of players successfully entered to national team o BTTC have been well recognized among table tennis sports society on the unique team management and fast growing with quality. 15

16 Banpu Post-Flood Rehabilitation Project at Ban Khao Samorkhon, Lopburi Province Baan Khao Samorkhon development project demonstrates Banpu s community development model aiming at community s better quality of living, sustainable development with participation/ involvement of community and network partners. House Repairing for Moo 3 To help community affected from 2011 flooding in the restoration and rehabilitation stage, ensuring them return back to normal condition as soon as possible. Immediate (2012) To support community development for self-reliance and well-prepared for any future incidents. Short & Medium Term ( ) 2nd Crop Organic Rice Farming To create self-sufficient community model for the long-term sustainability development by emphasizing the involvement of the community, knowledge and capacity building, and civil society networks. Medium & Long Term ( ) Phoenix Oyster Mushroom Producing project 16

17 Banpu Employee Volunteering Program Banpu Punfun Punyim Strategic partner: Banpu employees in Thailand Target: Ban Don Yai Nong Sanoh School in Korat and its nearby communities Objectives: o To raise awareness of CSR among employees at all levels, aiming at higher Banpu CSR brand o To encourage cross-functional team working o To enhance relationship among Banpu employees (engagement) Fund: Banpu provided THB 300,000 financial support for school building while Banpu staff donated THB 93,016 for student s lunch fund and learning media. Result: 73 Banpu employees Over 150 teachers & students Over 250 community members. 30 Years, 30 CSR Ideas Special project to celebrate Banpu 30 th Anniversary, running in Target: Banpu employees from all BUs and operational sites in Thailand Objectives: o To commemorate Banpu s 30th Anniversary by inviting employees to propose and implement CSR ideas and/or volunteering activities o To encourage cross-functional team working by enabling staff with different skills and backgrounds to collaborate in their project throughout the whole process o To enhance awareness and commitment in CSR among employees Fund: Totaling amount of THB 560,750 for all 50 projects Result: 50 projects with very good feedback from employees. 17

18 THANK YOU